Hospitality major Hyatt Hotels Corp. (H), on Thursday, reported fourth quarter net income attributable to company of $294 million compared to a loss of $29 million, last year. Profit per share was $2.69 compared to a loss of $0.26. Net income in the fourth quarter included a non-cash benefit of $250 million due to the release of a valuation allowance on U.S. federal and state deferred taxes.<\/p>\n
Adjusted net income attributable to Hyatt was $278 million compared to a loss of $306 million, previous year. Adjusted profit per share was $2.55 compared to a loss of $2.78. On average, 14 analysts polled by Thomson Reuters expected the company to report profit per share of $0.33, for the quarter. Analysts’ estimates typically exclude special items. Adjusted EBITDA increased to $232 million from $112 million, previous year. Apple Leisure Group or ALG contributed $43 million of adjusted EBITDA in the fourth quarter. <\/p>\n
Fourth quarter total revenues increased to $1.59 billion from $1.08 billion, prior year. Analysts on average had estimated $1.52 billion in revenue. Adjusted revenues were $857 million compared to $584 million. <\/p>\n
Comparable system-wide RevPAR increased 2.4% in the fourth quarter, compared to the same period in 2019. Excluding Greater China, system-wide RevPAR increased 6.6% in the fourth quarter. <\/p>\n
For 2023, the company estimates system-wide RevPAR growth in a range of 10% to 15%. Net rooms growth is projected to be approximately 6.0%.<\/p>\n
In the fourth quarter, 57 new hotels or 10,784 rooms joined Hyatt’s system. As of December 31, 2022, the company had a pipeline of executed management or franchise contracts for approximately 580 hotels or approximately 117,000 rooms, inclusive of ALG’s pipeline contribution of approximately 20 hotels or approximately 8,000 rooms.<\/p>\n
As of December 31, 2022, the company has total debt of $3.113 billion. Total liquidity was approximately $2.6 billion.<\/p>\n
Early in the month, Hyatt completed the acquisition of the Dream Hotel Group. The acquisition included 12 lifestyle hotels, with another 24 signed long-term management agreements for hotels to be opened in future.<\/p>\n
The hotel chain also recently announced the planned rebranding of Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch as Grand Hyatt Scottsdale Resort & Spa in late 2024. This will mark the first Grand Hyatt hotel in Arizona.<\/p>\n
The hotel’s owner Xenia Hotels and Resorts, is expected to invest around $110 million to fully transform the property into a Grand Hyatt hotel, following a long renovation.<\/p>\n
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